Key Insights
- Water Oasis Group's Annual General Meeting to take place on 2nd of February
- Salary of HK$4.95m is part of CEO Alan Tam's total remuneration
- Total compensation is 269% above industry average
- Water Oasis Group's total shareholder return over the past three years was 114% while its EPS grew by 58% over the past three years
CEO Alan Tam has done a decent job of delivering relatively good performance at Water Oasis Group Limited (HKG:1161) recently. As shareholders go into the upcoming AGM on 2nd of February, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders will still be cautious of paying the CEO excessively.
Check out our latest analysis for Water Oasis Group
How Does Total Compensation For Alan Tam Compare With Other Companies In The Industry?
Our data indicates that Water Oasis Group Limited has a market capitalization of HK$953m, and total annual CEO compensation was reported as HK$6.3m for the year to September 2023. We note that's a decrease of 31% compared to last year. In particular, the salary of HK$4.95m, makes up a huge portion of the total compensation being paid to the CEO.
On comparing similar-sized companies in the Hong Kong Consumer Services industry with market capitalizations below HK$1.6b, we found that the median total CEO compensation was HK$1.7m. Hence, we can conclude that Alan Tam is remunerated higher than the industry median. Furthermore, Alan Tam directly owns HK$13m worth of shares in the company, implying that they are deeply invested in the company's success.
| Component | 2023 | 2022 | Proportion (2023) |
| Salary | HK$4.9m | HK$4.7m | 78% |
| Other | HK$1.4m | HK$4.5m | 22% |
| Total Compensation | HK$6.3m | HK$9.2m | 100% |
Speaking on an industry level, nearly 82% of total compensation represents salary, while the remainder of 18% is other remuneration. Water Oasis Group is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
Water Oasis Group Limited's Growth
Water Oasis Group Limited's earnings per share (EPS) grew 58% per year over the last three years. It achieved revenue growth of 16% over the last year.
Shareholders would be glad to know that the company has improved itself over the last few years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Water Oasis Group Limited Been A Good Investment?
Most shareholders would probably be pleased with Water Oasis Group Limited for providing a total return of 114% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
In Summary...
The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 2 warning signs for Water Oasis Group that you should be aware of before investing.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.